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have presumed that the teras would include the usual

provision for crediting to the Colonial Government, in

the Military Lands Account, the value of the land trans- ferred. It appears, however, that the Generel Officer

Commanding contemplates waiver of the normal Military

Lands Account transaction in the case of this site, since

the following passage occurs in a letter from him, dated

16th July, 1937, on the mbject of a site for the extension

of the Bowen Road Military Hospital:-

4.

"In the analogous case of the proposed transfer

of land for a hospital at Danger Flag Hill, Sir

Andrew Caldecott expressed to me the view that

having regard to the purpose for which the land

is required, any transfer to the War Tepartment

should be free, apart from moessary cash

expenditure incurred or to be incurred by the

Government in preparing the site. I gratefully

accepted this offer and hope Your Excellency

will take a similar view in regard to the site

at Bowen Road now asked for".

I should therefore be grateful if you would

inform me whether any concession in respect of the Military

Lands #ecount was in fact intended, or whether some other

concession wes intended, the nature of which may have been

misapprehended by the General ficer Commanding.

50 I shell, of course, feel bound by any undertaking which you may have given to the General Officer Commanding but for the reasons given in the enclosed despatch I have considered it necessary to refer the matter to the

Secretary of State. I should therefore be gled if you would send a copy of your reply to this letter to the

Secretary of State.

6.

The area at first thought of was, as you will

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